Saturday, September 28, 2019

Using Ownership Incentives in China Case Study Example | Topics and Well Written Essays - 2500 words - 1

Using Ownership Incentives in China - Case Study Example roach, the CEO is well placed in motivating the workers to be responsible and work hard considering that their own success is determined by the company’s success. Additionally, the use of this approach is important in demonstrating to the employees that the company values all stakeholders in it equally, and gives similar treatment to all its employees. As observed in the historical practices in China, however, there could be numerous challenges in implementing this considering that the workforce in China could possibly perceive such approaches by the CEO as forcing the American operational culture onto them, while overlooking the native population’s values. Another way of exporting the ownership culture to the Chinese population could involve sticking with the limiting stock ownership to the initial American team. By doing this, the CEO would be expected to formulate a different ownership culture and payment for the China-based team. However, this practice could prove challenging, especially if some of the staff in China could wish to have stock ownership in the company (Beyster and Economy 24). It could also be practical if the CEO exported the culture of ownership to China by creation of different structures of equity based on the different regions of operation. For instance, the ownership culture operations in China could be executed using different optimized methods of payment that are dependent on the region of operation and the taxation policy involved. Exporting the ownership culture to the Chinese employees could also be accomplished by sending expatriates from the US to China for the purpose of introducing the system, as well as offering the required training to the Chinese staff. The use of this approach could, however, experience culture shock for the foreign employees due to their lack of knowledge of the business traditions of the Chinese community. Ben Freed’s decision to offer the Chinese team similar company ownership as the Silicon Valley

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